My grandparents and parents have followed the tradition of a larger contribution to the college savings plan, coupled with a smaller token gift to unwrap. I had enough money to get a 4 year degree with enough left over as a nest egg for my first house. My hubby and I match any contribution to our son's college plan from relatives, plus our own automatic monthly payment into it.

My brother buys my kids a gold coin from the mint for occasions. It's solid gold, and for 'investment' purposes. He's not the soft and squishy buying type. That's cool and kind of memorable, I think.

Otherwise, just call up the parents and say that you'd like to give the long term savings thing and ask how they'd like it done. Maybe they already have a savings account your gift could be deposited into, or they'd like it done some other way. It's nice when people with good intentions give gifts that aren't a burden for the parents of the recipient.

I've taken to buying books, pretty hair things, little necklaces and craft things that can be used up and thrown away for my nieces who have lots of aunties and lots of big pink plastic gifts. For a 4month-old, I'd go for board books as suggested above, or clothes in a size bigger than she's wearing. It's always nice to have something bigger on hand when you find your baby has shot up a size seemingly overnight. I buy long onesies with feet and zipper openings.

if you wanted to go the money route, there are some pretty good online high yield savings accounts that you could start/contribute to that would be a little bit better than a savings bond. 3 months old aren't really into books or toys yet, so they accumulate a lot of stuff that may not be used... I still have stuff from the Beastchild's early months. He turns 5 in 8 days

Logged

My inner (r-word) is having a field day with this one.-Love is Evol: Christopher Titus-

I do like the idea of getting a long-term money gift. I'm not sure how to do it, though. You could start them a savings account and put in a certain amount (not sure what your budget is) for special occasions. You could start an investment portfolio or trust fund. If you do decide to do it, maybe you should hammer the details out with Mom and Dad.

If you decide to get her something else, Ugly Dolls are usually very child-safe. They're completely soft. . . no hard eyes or noses. I'm sure Mom and Dad would also appreciate a duplicate baby blanket if they don't have one already. (If niece gets attached to it, then one can be with her while the other gets washed.)

If you want to get something that will be good for when she is a bit older, My Quiet Book might be a good one. It's made out of fabric and helps them practice life skills (buttoning and unbuttoning, zipping and unzipping, etc).

We love the Lamaze baby toys. Especially Freddie the firefly. It was my son's favorite. Now that he's in physical and occupational therapy due to mild CP, I look at every toy to see what he can learn from it. Wooden puzzles with the knobs, stackers, and blocks are great for learning. One of those tables that plays music and has lights is good too. Kids learn cause and effect while having fun, and learn to sit up and eventually stand at the table. His favorite toy now is a fisher price mini kitchen. It plays music, has doors to open and switches to activate, and it's just his size.

Someone with better financial knowledge and understanding than I have explained to me why saving bonds aren't really a great investment. I can't really explain (or understand) it, so you'll have to trust the friend of an anonymous stranger on the internet.

I'd also do something the baby can play with a few months from now. Someone up thread suggested a music table. Fisher price makes one with removable legs, so they can play with it before they stand. Once they can 'cruise', they can hold on to it to support themselves. DD still plays with hers even though she's approaching 2.

I think a savings bond (or a savings account) is an excellent, excellent gift. I also think that it is a terrible, terrible thing to ask for as a parent and the taint on the asking has over-riden the wonderfulness of the gift.

I mean, it might not be the greatest financial investment, but it is a lot better than the return on investment of a stuffed animal.

25 bucks twice a year for 20 years (just to keep the math easy) is $1000 with zero interest accumulated and $2000 with ca 6% interest compounded.

10/month for 20 years (plus a bonus on birthdays) gives you about $5000.

Personally, a cheque for a couple thousand dollars when you head off to live on your own can be fantastic.

If you are in Canada you can get RESP (Registered Education Saving Plans ) which are pretty great. (The first $20?/ month is matched by the government and then some more each year depending on your income. It can be taken out between ages 18 and 35 for ANY educational use (university, pilot school, hairdressing, etc...) or, if you don't, you get back the principal and the interest goes to an educational charity of your choice, (Also please don't quote me on the numbers. )

I used to give savings bonds when I could still get them at the bank or credit union. Now I have to get them through Treasury's web site, and we somehow don't get along with each other.

If I was close enough to ask, I ask the parents if a 529 fund had been set up. Otherwise, I give a gift card to Target or Walmart so that the parents can buy diapers. Let's be honest; a three month old baby doesn't care about presents.